The Budget Couple

We are the Budget Couple. We make a bi-weekly podcast that talks about life, family, and how to afford it. Join us on our budgeting journey as we explore the keys to budgeting, personal finance, and more.

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Episode 11: Budget Ratios

In this episode, we talk about budget ratios and how we use them to help guide our decisions.

Show Notes

Budget ratio general rules

  • 25% housing cost (rent or mortgage, include taxes, insurance, etc)
  • 25% transportation (car, bus, metro, include upkeep of car and insurance)
  • 15% retirement
  • 25% living expenses (food, going out, utilities etc)
  • 10% savings/debt relief

Our budget ratio

  • Our usual take home pay is $7700 a month
  • Mortgage is $1700 or (22%)
  • Transportation – Roughly 600 a month (~8%)
  • Retirement is 15% as a percentage but in actuality, it is 6%
  • Living expenses about $1400 a month or (18%)
  • Childcare and child expenses about $1400 or (18%)
  • Left over is about $1400 (18%) which goes to the solar panels, trips, and house (in theory 28% of our income is left over or about $2100)

Other types of budget ratios

  • 50/30/20: 50% Fixed costs, 30% Flexible spending, 20% Financial goals

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